Biodiesel: The German experience...Biodiesel: The German experience Dr Guido Reinhardt Seminar: Information Initiative Concerning Biodiesel Experience from EU Countries “ Bukarest,

Biodiesel:The German experience

Dr Guido Reinhardt

Seminar: Information Initiative ConcerningBiodiesel Experience from EU Countries “

Bukarest, Romania, 28 June 2007

ifeu – Institute for Energy and Environmental Research Heidelberg, Germany

Who we are - What we do

IFEU - Institute for Energy and Environmental Research Heidelberg, since 1978

• Independent scientific research institute

• organised as a private non profit company with currently about 40 employees

• Research / consulting on environmental aspects of- Energy (including Renewable Energy)- Transport- Waste Management- Life-Cycle-Analyses - Environmental-Impact- Assessment- Renewable Resources- Environmental Education

TREMOD: Transport Emission Model• Modelling emissions of road vehicles, trains, ships and airplanes

• Official database of the German Ministries for emission reporting

Life cycle analyses (LCA) and technology impact assessments since 1990:

• Biofuels (all biofuels, all applications)

• Alternative transportation modes

• Renewable Energy



IFEU - Institute for Energy and Environmental Research Heidelberg, since 1978

• Our clients (on biofuel studies)- World Bank- UNEP, GTZ etc. - European Commission- National and regional Ministries- Associations (industrial, Life-Cycle-Analyses - Local authorities- WWF, Greenpeace etc.- Companies (DaimlerChrysler, German Telekom, etc.)- Foundations (German Foundation on Environment, British

Foundation on Transport etc.)

Consumption of biodiesel in Germany

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

thousand tonnes

from 2006:estimate

Source: IFEU 2006

Tax exemption

Bottlenecks in GermanyTaxation issues

Technical issues

Biodiesel quality

Life cycle assessment


Technical issues

Biodiesel quality


Courtesy of HeiPro

Conversion kit

What happened yesterday in Germany ?


Technical issues

Biodiesel quality



Technical issues

Biodiesel quality


Courtesy of HeiPro

Conversion kit



Technical issues

Biodiesel quality



Technical issues

Biodiesel quality


Courtesy of Univ. Rostock

Cylinder after operationwith poor quality biodiesel



Technical issues

Biodiesel quality



Technical issues

Biodiesel quality

Life cycle assessmentAssoc. for quality management

Tax exemption

Biodiesel approvals (partly)

Norm EN 14214

Measures


Association for the Quality Management of Biodiesel(AGQM)

Founded in 1999

Guaranteeing quality requirements for biodiesel in the whole production/consumption chain

Members: producers, traders, filling stations, constructors, etc.

Biodiesel quality in Germany

Property EN 14214 AGQMWater content (mass ratio) max. 500 mg/kg Producers: max. 220 mg/kg,

all members: max. 300 mg/kg

Total contamination(mass ratio)

max. 24 mg/kg max. 20 mg/kg

Oxidation stability (induction time)

min. 6 h min. 6 h (check point: final user)

Biodiesel sold at public filling stations requires addition of

oxidation stabilisers. Period for production ofwinter quality biodiesel

16/11 until 28/02 19/10 until 28/02

Fatty acid profile – like rapeseed (for selling at public filling stations)

Important differences between the Norm and AGQM standard

Biodiesel quality in Germany

• What happened yesterday?

• The situation of today

• What will come tomorrow?



Germany

• Fleets

• Private consumers

• Blending 33 % are used for blends

53 % via companies’ andpublic filling stations

14 % via public fillingstations

The situation of today

Biodiesel consumption 2005:

Source: AGQM 2006

Driving forces

Courtesy of Oelmühle Leer Connemann

Courtesy of IWR

Costs

Driving forces

Costs

Courtesy of RWZ Rhein-Main

Courtesy of IWR

Courtesy of energieroute.de

Image

Driving forces

Courtesy of Teppichkurier Heineking

Guiness Book of RecordsCertificateGUINESS BOOK OF RECORDS confirms after thorough examination the record:

Europe’s first rapeseed lorry is running on biodiesel (100% rape-seed oil methyl ester) for WilliHeineking from Landesbergen (D). On 26 March 1999 the 360 HP MAN-Büssing lorry (type 19360) had travelled exactly 1,333,333 km.Hamburg, 09/08/1999

Manufacturer Model Biodiesel approvalAudi A2 (8Z), A3 (8L), A4 (8E, 8E2, 8E5) except 85 kW, A4

Cabriolet (8H), A6 (4B), Allroad (4B)approval for RME, possible malfunctioning of the auxiliary heating system or exclusion of its use

Audi A3 (8P) no general approval (only specific models)Audi A4 (8E) 85 KW; A4 (8EC, 8ED); A6 (4F); A8 (4E) no approvalBMW no approvalDaimlerChrysler no approval ex worksDeutz all engines except for 909, 910, 1015, 2015 approval if biodiesel according to EN 14214Fendt all tractors approval, comply service informationEvoBus Setra OM 457HLA/LA, OM 501/502 LA, OM 906 LA buses approval possible on requestLinde all forklifts from 1.2 to 8 t load approval, comply conditionsMAN engines with Common-Rail system no approvalMAN others approval if RME according to EN 14214Neoplan Bus engines with Common-Rail system no approvalNeoplan Bus others no general approval, only biodiesel according to EN

14214Opel no general approvalStill Forklift model R 70 (different loads) approvalVW Polo Diesel (A03) (except Post Polo), Golf (A4), Golf

Vento (A3), Golf Ecomatic (A3), Passat (B4), Passat(B5) without particulate filter, Sharan, T4, T5, LT –2, Caddy II Wirbelkammer and SDI, TDI, Polo Classic, Lupo, Bora, Beetle, Phaeton V10 TDI, Touareg R5 TDI and V10 TDI

approval if RME according to EN 14214

VW Golf (A5) approval only if ordering optional RME versionVW Touran no approval

Source: UFOP 2006 Status: 2005

Approvals for biodiesel use

But…….: no approvals at all for all

new models of passenger cars

The situation of today

Saarland

Rhineland-Palatinate

Baden-Württemberg

Bavaria

ThuringiaHesse

NortWestfaliah Rhine-

Schleswig-Holstein

HamburgBremen

Lower Saxony

Saxony

Saxony-Anhalt

Berlin

Brandenburg

Mecklenburg-West Pomerania

264

135

35

4673

264

278

49

43

36

67

41

28

269

13

Source: UFOP 2004/2005

Status 2005:

about 1,900 (i.e. 12%)public filling stationsoffer biodiesel

1,406 offer AGQM-biodiesel

AGQM-Biodiesel filling stations in Germany

Cumulated revenue loss in Germany

thousand million €

0

1

2

3

4

5

6

7

8

9

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

BioethanolPlant oilBiodiesel

Source: IFEU 2007

from 2006: estimate

… by 100 % mineral oil tax exemption

Energy tax law 15/07/2006:

Stepwise increasing tax on biodiesel, biodiesel blends and plant oilOther biofuels tax-freeTax exemption for agriculture and forestry

Biofuel quota law 18/12/2006:

Fixed quota for biodieselStepwise increasing quota for bioethanolStepwise increasing quota for sum of biofuels

Biofuels quotafrom 01/2007

Tax on biofuelsfrom 08/2006

Dual concept for biofuels

Biofuels: taxation and legislation

Pure biodiesel:7 ct/L 01/08/06 – 2007

13 ct/L in 200820 ct/L in 200926 ct/L in 201032 ct/L in 201145 ct/L in 2012

Biodiesel blends:15 ct/L until 31/12/0647,04 ct/L from 2007

Pure plant oil:0 ct/L in 2006 & 20078 ct/L in 2008

17 ct/L in 200925 ct/L in 201032 ct/L in 201145 ct/L in 2012

Tax exemption for agriculture & forestryEthanol/ETBE tax-free!

Tax on biofuels from 08/2006:

Source: Federal Government 2006

Biofuels: taxation in Germany

Cumulated revenue loss in Germany

thousand million €

0

1

2

3

4

5

6

7

8

9

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

BioethanolPlant oilBiodiesel

Source: IFEU 2007

from 2006: estimate

… by 100 % mineral oil tax exemption

Due to thenew law on taxation of biofuels

Energy tax law 15/07/2006:

Stepwise increasing tax on biodiesel, biodiesel blends and plant oilOther biofuels tax-freeTax exemption for agriculture and forestry

Biofuel quota law 18/12/2006:

Fixed quota for biodieselStepwise increasing quota for bioethanolStepwise increasing quota for sum of biofuels

Biofuels quotafrom 01/2007

Tax on biofuelsfrom 08/2006

Dual concept for biofuels

Biofuels: taxation and legislation

Quota for biodiesel:4,40 % from 2007 - 2015

Quota for bioethanol:1,20 % in 20072,00 % in 20082,80 % in 20093,60 % from 2010 - 2015

Note: Quota means minimum quota,% relates to energy content

Quota for all biofuels:6,25 % in 20096,75 % in 20107,00 % in 20117,25 % in 20127,50 % in 20137,75 % in 20148,00 % in 2015

Biofuels quota from 01/2007:

Source: Federal Government 2006

Biofuels: legislation in Germany

Biofuels quota from 01/2007

Biofuels: legislation in Germany

Remarks and conclusions:Overall biofuels quota higher than EU Biofuels Directive (2003/30/EC) goal (5,75%)Biofuels quota, i.e. no obligatory blending !Trading of quota possibleFine for non-compliance with quota:h60 ct/L for biodiesel and overall quotah90 ct/L for bioethanol quota

Yearly check: none (in contrast to biofuel tax law)







Germany

Biofuels demonstration in Berlin

• Biofuel quota legislation leads to short term close-downs of production facilities.

• Not all biofuels seem to be sustainable: Certification is on its run but takes its time.

Germany

Pending challenges

Biodiesel crisis in Germany

“The German bio-diesel industry is in trouble. Politics […] carries the responsibility”…

Taken from: M. Bensmann: SOS Biodiesel. In: neue energie 04/2007, pp. 57-60.



Germany

Pending challenges

Biofuels vs. Nature conservation

Sweet Danger for WildernessEthanol from Sugarcane Clear-ccutting for Biodiesel

WWF Study on palm oil

Rain Forest for Biodiesel ?Ecological effects of using palmoil as a source of energy

Project coordinator (WWF)Imke Lübbeke

Project leader (IFEU)Dr. Guido Reinhardt

Publication2007

Oil palm plantation and fruits

Oil palm plantation through cutting of tropical forests

• Criteria for a Sustainable Use of Bioenergy on a Global Scale: IFEU, FSC, Lanje: commissioned by the Federal Agency of Environment, Germany

• Certification of biomass & biomass conversion to biofuels:meo Consulting Team, supported by FNR, Germany

• Criteria for sustainable biomass production: Project Group "Sustainable Production of Biomass„ commissioned by Energy Transition Task Force, Netherlands

• Analysing of sustainability criteria and certification systems for biomass: commissioned by DG-TREN /D2/428-2006

• Technical Assistance for certification aspects related to the promotion of the use of biofuels in the European Union: WIP, IFEU, IC, commissioned by DG-TREN

Activities on certification of biofuels (selection)


national challenge


international challenge

Germany

Pending challenges

Consumption of biodiesel in Germany

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

thousand tonnes

from 2006:estimate

Source: IFEU 2007

We had many problems, most of them

are solved, two are pending …

But the success story might go on …

Last but not least

Thank you very much for yourattention and I‘m happy to answeryour questions

Dr. Guido Reinhardt

Contact details:

[email protected]+ 49 – 6221– 4767– 0 / - 31www.ifeu.de

Documents

Biodiesel: The German experience...Biodiesel: The German experience Dr Guido Reinhardt Seminar: Information Initiative Concerning Biodiesel Experience from EU Countries “ Bukarest,